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| Adidas sees profits drop by 97% | Adidas sees profits drop by 97% |
| (30 minutes later) | |
| Sportswear firm Adidas has said profits in the January to March period fell 97% from a year ago after sales were hit by the economic downturn. | Sportswear firm Adidas has said profits in the January to March period fell 97% from a year ago after sales were hit by the economic downturn. |
| Adidas made 5m euros ($6.7m; £4.4m) in net profits during the first quarter of 2009, down from 169m euros in 2008. | Adidas made 5m euros ($6.7m; £4.4m) in net profits during the first quarter of 2009, down from 169m euros in 2008. |
| Sales were down 6% on a year ago, and the company said it was facing higher raw material and wage costs. Shares in Adidas fell 11% in Frankfurt. | |
| The firm also said it would close some offices and might shut some stores. | The firm also said it would close some offices and might shut some stores. |
| Adidas is to close some regional offices in Europe and Asia as it aims to save more than 100m euros per year. | Adidas is to close some regional offices in Europe and Asia as it aims to save more than 100m euros per year. |
| It will also carry out a review of under-performing retail stores. | It will also carry out a review of under-performing retail stores. |
| 'Urgent restructuring' | 'Urgent restructuring' |
| "We are now in a position to make a game-changing structural refinement to our business," said Herbert Hainer, group chief executive and chairman. | "We are now in a position to make a game-changing structural refinement to our business," said Herbert Hainer, group chief executive and chairman. |
| "The current economic climate adds urgency to accelerate our plans. | "The current economic climate adds urgency to accelerate our plans. |
| "Our results have been materially affected by higher input prices, currency devaluation effects and restructuring costs. | "Our results have been materially affected by higher input prices, currency devaluation effects and restructuring costs. |
| "Although some of these items will recur again as we go through the balance of the year, I am convinced we will put most of these effects behind us in the current year." | "Although some of these items will recur again as we go through the balance of the year, I am convinced we will put most of these effects behind us in the current year." |
| Adidas is the world's second-biggest sporting goods maker after Nike. | Adidas is the world's second-biggest sporting goods maker after Nike. |
| The German firm bought Reebok in 2006 to help it compete against Nike, but Reebok still struggles, particularly in North America where Adidas saw its sales fall by 14% in 2008. | The German firm bought Reebok in 2006 to help it compete against Nike, but Reebok still struggles, particularly in North America where Adidas saw its sales fall by 14% in 2008. |
| In January Adidas announced it would close its Reebok office in Bolton, ending a 116-year association with the town. | In January Adidas announced it would close its Reebok office in Bolton, ending a 116-year association with the town. |
| Rival Nike has also been hit by falling consumer demand. In March it said it planned to halt production at three shoe factories in China and one in Vietnam. | Rival Nike has also been hit by falling consumer demand. In March it said it planned to halt production at three shoe factories in China and one in Vietnam. |